Fill in the Blank QuestionFill in the blank question.A cost that a manager can determine or influence is called a(n) cost.

A cost that a manager can determine or influence is called a(n) controllable cost.

Controllable costs are expenses that can be adjusted by a manager's decisions. These costs are important for managerial accounting and performance evaluation since they allow managers to exercise budgetary control and influence the financial health of their organization. Examples of controllable costs include direct labor, certain overhead expenses, and direct materials costs, which can all be managed based on operational decisions. In contrast, uncontrollable costs, such as fixed expenses (like lease agreements) or costs resulting from external factors (like regulatory changes), are beyond the influence of a manager’s actions. Understanding the distinction between controllable and uncontrollable costs enables more effective financial planning and resource allocation.